Summary
A 39-year-old defense contractor, with a high school diploma and some college, was denied a security clearance under Guideline F (Financial Considerations) due to significant delinquent debts exceeding $50,000. The Statement of Reasons detailed nine specific delinquent debts, including charged-off credit card debts to a bank ($35,256), a department store ($5,795), and another creditor ($4,216), along with various other collection accounts ranging from $2,404 to $399.
Disqualifying conditions 19(a) and 19(c) were raised, while mitigating condition 20(b) was applied. Despite the applicant's attempts to manage his finances, including filing for Chapter 13 Bankruptcy, the judge found a pattern of financial irresponsibility.
The denial was based on the applicant's admission of the nine delinquent debts, a failure to demonstrate sufficient evidence of responsible financial management or debt resolution over a five-year period, and the judge's conclusion that these financial issues indicated poor judgment and unreliability, making him incompatible with holding a security clearance.
Why the Applicant Was Denied
- The applicant admitted to having nine delinquent debts totaling over $50,000, demonstrating financial irresponsibility.
- The applicant failed to show sufficient evidence of responsible financial management or resolution of debts over a five-year period.
- The judge concluded that the applicant's financial issues indicated poor judgment and unreliability, which are incompatible with holding a security clearance.
Conditions Referenced
- 19(a)raisedInability or Unwillingness to Satisfy Debts
- 19(c)raisedA History of Not Meeting Financial Obligations
- 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant did not act responsibly under the circumstances by taking on financial obligations that were not his own.
Key Rule Quoted
“Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information.”
Procedural Posture
- SOR issuedAug 27, 2015
- Answer filedSep 28, 2015
- Hearing heldApr 27, 2016Applicant requested the record remain open until May 10, 2016.
- Decision dateAug 5, 2016
Cite For
- Financial Irresponsibility as a Basis for Security Clearance Denial
- The Impact of Poor Financial Management on Security Clearance Eligibility
- The Rejection of Mitigating Conditions When Responsible Action Is Not Demonstrated